PANAMA: THE FASTEST GROWING ECONOMY IN THE WESTERN HEMISPHERE

Despite slower GDP growth of 6.2% in 2014, according to the Ministry of Economy and Finance and LAFTA reports, Panama remains one of Latin America’s fastest growing economies. With its history of low inflation, this is a trend set to continue in the coming years with the IMF forecasting average annual growth of around 6.5% over the next five years. The main reasons for the increased GDP are:

TOURISM – The Tourist Industry in Panama continues to show increases in the number of visitors and it is hoped that support for the increased investments (hotels, airline flights, marinas) continues to record a major expansion.

EDUCATION – A shortage of skilled workers has been one of the most commonly voiced concerns of business professionals in Panama. With the skills shortage having an impact on the labor market, authorities inaugurated recent developments in subjects offered in technical education, obtaining a Government commitment and thrust to reduce labor shortages.

PANAMA CANAL – It is expected that the forecasted inauguration of the widening of the Panama Canal marks the beginning of important investment opportunities in real estate, light industries, industrial estates, warehousing and exports.

SUSTAINABILITY – The prolonged joint forces of successive governments together with an agreement on a flat tax system of 10%, have helped position Panama as a stable global business destination and a global transport destination. Panama received a big boost in August 2016 with the added joint forces of public and private sector organizations.